Times are hard, and especially for the over 55s. Now a survey shows that the average over 55-year-old is nearly 1000 pounds worse off every year, as increased costs of living bite.
To supplement retirement incomes, many turn to a part – or even full- time job. But taking a look at the equity release market could help ease the economic burden. While a risk, it can also provide a valuable source of extra income.
The risks can be that you die shortly after taking it out, and therefore will have sold part of your home on the cheap, as you’re unlikely to receive the full market value for what you choose to release. Also avoid a scheme with compound interest, as paying interest on interest can become very costly very quickly.
Equity release offers some important plus points for those home owners in later life. Equity release provides a lump sum or regular income or both of these, and you won’t have to leave your home. However, it is a complex product and will only be suitable for some.